It's Started - The Suncoast/Sam Goody Closings Sales
04-05-06, 08:37 PM
#426
Member
Join Date: Nov 2004
Posts: 209
Likes: 0
Received 0 Likes
on
0 Posts
Aventura Mall Suncoast in South Florida changed discounts today. They are now at 60% off all new DVDs (no minimum purchase requirements). The used DVDs which they have an influx of additional titles are now 70% off. The holiday items are still 80% off, t-shirts and figures are 70% off and posters & calendars are 80% off. They seem to be the store to get items from closing stores.
BTW, there are signs stating that the Aventura store will only be open for another 9 days after today.
Tim :-)
BTW, there are signs stating that the Aventura store will only be open for another 9 days after today.
Tim :-)
04-06-06, 08:44 PM
#430
DVD Talk Platinum Edition
My local one is nearly empty. Seriously they should consider boxing everything up and sell the stuff outside the store. Probably save more money on their electricity bill.
04-06-06, 09:12 PM
#432
DVD Talk Special Edition
For anybody in my area....Exton Mall is wiped out, King of Prussia mall still has a decent amount of dvds and just got restocked....lots of used dvds and figurines just in. (Both are Sam Goodys).
04-06-06, 11:00 PM
#434
DVD Talk Legend
The local Sam Goody now has a sign that says "3 Days Left". DVDs and CDs are now 60% off (no minimum requirement) however, the 60% excludes box sets. They are now 50% off. That's pretty strange because I picked up a stack of box sets @ 60% off a couple of days ago when it was 60% off 4 or more.
Heads up for anyone waiting for a 60% (no minimum) to pick up some boxsets. If your store is currently at 60% off (4 or more) better grab those sets!
Heads up for anyone waiting for a 60% (no minimum) to pick up some boxsets. If your store is currently at 60% off (4 or more) better grab those sets!
04-07-06, 11:29 AM
#436
Senior Member
Join Date: Jan 2006
Location: Fairfax, VA
Posts: 823
Likes: 0
Received 0 Likes
on
0 Posts
Navarre's Studio Distribution Folds, Labels, Bands Lose Thousands (Due To Musicland Bankruptcy)
Studio Distribution Folds, Labels Lose Thousands
Matthew Solarski reports:
Perfect world: young, talented, rosy-cheeked musician-type slaves for months-- years, maybe-- cuts record, sells record with the help of kind grassroots label, earns enough bread to stay alive, and gets back to slaving. Rinse and repeat.
Real world: grassroots label has to answer to middleman distribution company, who in turn must answer to huge corporate mega-distro. Things like loans and credit and pay-delay periods crop up. Shit gets ugly. Suddenly young, talented musician-type is caught up in a precarious web of financial dependency in which one proverbial straw can break the camel's back. Suddenly the cheeks aren't so rosy.
For New York-based Studio Distribution and the dozens of electronic music labels beneath its umbrella (including Get Physical, Accidental, Crosstown Rebels, Fabric, Output, Peace Frog, Poker Flat, and Tresor) that dreaded straw arrived in January when specialty retailer Musicland Holding Corporation (which owns Sam Goody and Suncoast) filed for chapter 11 bankruptcy.
The bankruptcy in turn cost publisher and multimedia distributor Navarre Corporation some $12.7 million (based on a write-off reported in The Minneapolis/St. Paul Business Journal). Partnered with Studio, Navarre handled product fulfillment and a number of sales accounts for the distro-- and after posting the losses, Navarre pulled the plug on Studio.
Just like that, a nine-year old company was kaput, its employees suddenly jobless. Explained former Studio employee Jon Gray on an e-mail discussion list: "Basically Navarre, who handled our fulfillment and a lot of credit risk, got hit hard by Musicland going bankrupt," he wrote, continuing, "left [with] a large debt, [Navarre] decided that Studio was no longer a viable division, so abruptly stopped funding."
"There was no severance package available. We only have a week to get our shit and get out."
Former Studio employees aren't the only ones getting dicked over. The financial fallout from Studio's shutdown has been felt hardest by the over 40 labels for which Studio provided North American distribution, and their rosters. While some former Studio clients will still get distribution through Navarre, many were simply left out in the cold.
Worst of all, because there is roughly a three-month period between the delivery of a given record to Studio and repayment for that record, much of the money Studio owes labels will go unpaid.
For folks like DJ/producer (and Metro Area member) Morgan Geist, who runs Environ Records, this essentially means receiving no revenue on records released so far this year. As Geist told Pitchfork, "I can confirm we lost a lot of money, potentially a lot of stock [ i.e., product], and the benefits of all our work and cash spent on our publicity campaigns for North America, specifically for the Kelley Polar album [Love Songs of the Hanging Gardens]. Ditto any sales payments for that album."
Geist is extremely unhappy with the way Studio handled things. Apparently the distributor's then-president Dave Watkins sent a mass e-mail to his clients at the time of the closure in which he declared, "I'm not going to get into the details of Studio Distribution's closing but we were certainly not expecting this."
"The labels who will go out of business because of this and the artists who will get no royalties because of this deserve the fucking details," said Geist.
"I can't imagine not paying my artists royalties and then saying, 'I'm not going to get into the details of why you're not getting paid for your hard work.' I would deserve a skewering if I did that."
Watkins initially responded to Pitchfork's request for comment, but did not respond to follow-ups.
Environ is currently looking for new distribution. A recent label e-newsletter implored North American fans to purchase Environ records, particularly Polar's, directly from the label's online store, and not from retailers-- since neither the artist nor label are likely to receive any portion of store sales.
Chicago's Hefty Records is in a similar position, having shipped copies of Eliot Lipp's new LP Tacoma Mockingbird on the eve of Studio's closing. Owner John Hughes III suspects Lipp, too, may never see any revenue for sales of this album, nor will Hefty.
As Hughes explained, picking up the pieces has been a frustrating process, to say the least. "There's no progress with reclaiming the money owed," he wrote to Pitchfork. "Nothing has been communicated about that from Studio. From our past experience and attorney's advice, we found that [the bankruptcy] will be reviewed by a judge who will decide what portion should be paid out."
Continued Hughes, "This could be a couple years away and we can only hope for a small sliver of what's actually owed. Odds are we won't even receive that because the labels are at the back of the line. From what we've been told, the debt owed to Navarre will be [repaid] first and then [that of] the secured creditors."
A recent article in Billboard revealed that Studio had a line of credit with Navarre-- unknown to many of Studio's clients, including Hughes. "It really rubs me the wrong way," he wrote, "that all of these indie labels' records were used against that line of credit without us knowing."
Also complicating the matter is !K7, the German techno label that created Studio in 1997 to be its North American distributor. !K7 parted ways with the distro it started effective January 1 of this year; it has been suggested that they were better informed of Studio's precarious financial situation. The same Billboard article also mentions Navarre writing off a $4.1 million balance to an "unnamed label," which some suspect to be !K7.
UK-based label Global Underground also left Studio around the same time.
!K7's U.S. manager Jennifer Masset declined to comment on !K7's reasons for breaking ties with Studio, but did express to Pitchfork her disdain for Navarre's actions. "I think the way Navarre ended things for them was about as cold-hearted as this industry can get," Masset wrote. "I would say that the seven years I dedicated to Studio Distribution were the most fun I have had in this industry and it is unfortunate to watch such an incredible company be killed by a corporation like Navarre."
The bottom line: A whole lot of musicians and the labels behind them won't receive the bread they've earned this year. And they may never know exactly why.
Geist's advice? "I'd warn other label owners to be [as] vigilant as possible about getting paid on time," he told Pitchfork. "But the truth is that even vigilance often yields nothing, no change in distributor behavior or cash flow."
"In many ways the business hasn't changed since the 1950s or 60s," he said. "We're still in the situation where you usually have to ship a new record in order to get paid for the last one. Labels have very little bargaining power against distributors. The debt can stack up quickly and really sting you when a distributor goes for bankruptcy and there's little you can do about it."
"It's terrifying right now," Geist continued, "because as a label and as a studio artist (that is, not a touring live band with revenue from shows), it's very hard to make money through record sales. But if a system evolves where traditional distribution is gone but artists and labels can earn a living, I'm all for it."
Acknowledging the loss taken by artists and labels, publicist Gamall Awad, whose clients include many artists once distributed by Studio, attempted to put things in a positive light. "In the end you have to take an optimistic look [that] good music and good business will out," he observed. "People with strong product will find a way to reach their audience."
* Studio: www.studiodistribution.com
* Navarre: www.navarre.com
* Musicland: www.musicland.com
* Environ: www.environrecords.com
* Hefty: www.heftyrecords.com
* !K7: www.k7-de.com
Studio Distribution Folds, Labels Lose Thousands
Matthew Solarski reports:
Perfect world: young, talented, rosy-cheeked musician-type slaves for months-- years, maybe-- cuts record, sells record with the help of kind grassroots label, earns enough bread to stay alive, and gets back to slaving. Rinse and repeat.
Real world: grassroots label has to answer to middleman distribution company, who in turn must answer to huge corporate mega-distro. Things like loans and credit and pay-delay periods crop up. Shit gets ugly. Suddenly young, talented musician-type is caught up in a precarious web of financial dependency in which one proverbial straw can break the camel's back. Suddenly the cheeks aren't so rosy.
For New York-based Studio Distribution and the dozens of electronic music labels beneath its umbrella (including Get Physical, Accidental, Crosstown Rebels, Fabric, Output, Peace Frog, Poker Flat, and Tresor) that dreaded straw arrived in January when specialty retailer Musicland Holding Corporation (which owns Sam Goody and Suncoast) filed for chapter 11 bankruptcy.
The bankruptcy in turn cost publisher and multimedia distributor Navarre Corporation some $12.7 million (based on a write-off reported in The Minneapolis/St. Paul Business Journal). Partnered with Studio, Navarre handled product fulfillment and a number of sales accounts for the distro-- and after posting the losses, Navarre pulled the plug on Studio.
Just like that, a nine-year old company was kaput, its employees suddenly jobless. Explained former Studio employee Jon Gray on an e-mail discussion list: "Basically Navarre, who handled our fulfillment and a lot of credit risk, got hit hard by Musicland going bankrupt," he wrote, continuing, "left [with] a large debt, [Navarre] decided that Studio was no longer a viable division, so abruptly stopped funding."
"There was no severance package available. We only have a week to get our shit and get out."
Former Studio employees aren't the only ones getting dicked over. The financial fallout from Studio's shutdown has been felt hardest by the over 40 labels for which Studio provided North American distribution, and their rosters. While some former Studio clients will still get distribution through Navarre, many were simply left out in the cold.
Worst of all, because there is roughly a three-month period between the delivery of a given record to Studio and repayment for that record, much of the money Studio owes labels will go unpaid.
For folks like DJ/producer (and Metro Area member) Morgan Geist, who runs Environ Records, this essentially means receiving no revenue on records released so far this year. As Geist told Pitchfork, "I can confirm we lost a lot of money, potentially a lot of stock [ i.e., product], and the benefits of all our work and cash spent on our publicity campaigns for North America, specifically for the Kelley Polar album [Love Songs of the Hanging Gardens]. Ditto any sales payments for that album."
Geist is extremely unhappy with the way Studio handled things. Apparently the distributor's then-president Dave Watkins sent a mass e-mail to his clients at the time of the closure in which he declared, "I'm not going to get into the details of Studio Distribution's closing but we were certainly not expecting this."
"The labels who will go out of business because of this and the artists who will get no royalties because of this deserve the fucking details," said Geist.
"I can't imagine not paying my artists royalties and then saying, 'I'm not going to get into the details of why you're not getting paid for your hard work.' I would deserve a skewering if I did that."
Watkins initially responded to Pitchfork's request for comment, but did not respond to follow-ups.
Environ is currently looking for new distribution. A recent label e-newsletter implored North American fans to purchase Environ records, particularly Polar's, directly from the label's online store, and not from retailers-- since neither the artist nor label are likely to receive any portion of store sales.
Chicago's Hefty Records is in a similar position, having shipped copies of Eliot Lipp's new LP Tacoma Mockingbird on the eve of Studio's closing. Owner John Hughes III suspects Lipp, too, may never see any revenue for sales of this album, nor will Hefty.
As Hughes explained, picking up the pieces has been a frustrating process, to say the least. "There's no progress with reclaiming the money owed," he wrote to Pitchfork. "Nothing has been communicated about that from Studio. From our past experience and attorney's advice, we found that [the bankruptcy] will be reviewed by a judge who will decide what portion should be paid out."
Continued Hughes, "This could be a couple years away and we can only hope for a small sliver of what's actually owed. Odds are we won't even receive that because the labels are at the back of the line. From what we've been told, the debt owed to Navarre will be [repaid] first and then [that of] the secured creditors."
A recent article in Billboard revealed that Studio had a line of credit with Navarre-- unknown to many of Studio's clients, including Hughes. "It really rubs me the wrong way," he wrote, "that all of these indie labels' records were used against that line of credit without us knowing."
Also complicating the matter is !K7, the German techno label that created Studio in 1997 to be its North American distributor. !K7 parted ways with the distro it started effective January 1 of this year; it has been suggested that they were better informed of Studio's precarious financial situation. The same Billboard article also mentions Navarre writing off a $4.1 million balance to an "unnamed label," which some suspect to be !K7.
UK-based label Global Underground also left Studio around the same time.
!K7's U.S. manager Jennifer Masset declined to comment on !K7's reasons for breaking ties with Studio, but did express to Pitchfork her disdain for Navarre's actions. "I think the way Navarre ended things for them was about as cold-hearted as this industry can get," Masset wrote. "I would say that the seven years I dedicated to Studio Distribution were the most fun I have had in this industry and it is unfortunate to watch such an incredible company be killed by a corporation like Navarre."
The bottom line: A whole lot of musicians and the labels behind them won't receive the bread they've earned this year. And they may never know exactly why.
Geist's advice? "I'd warn other label owners to be [as] vigilant as possible about getting paid on time," he told Pitchfork. "But the truth is that even vigilance often yields nothing, no change in distributor behavior or cash flow."
"In many ways the business hasn't changed since the 1950s or 60s," he said. "We're still in the situation where you usually have to ship a new record in order to get paid for the last one. Labels have very little bargaining power against distributors. The debt can stack up quickly and really sting you when a distributor goes for bankruptcy and there's little you can do about it."
"It's terrifying right now," Geist continued, "because as a label and as a studio artist (that is, not a touring live band with revenue from shows), it's very hard to make money through record sales. But if a system evolves where traditional distribution is gone but artists and labels can earn a living, I'm all for it."
Acknowledging the loss taken by artists and labels, publicist Gamall Awad, whose clients include many artists once distributed by Studio, attempted to put things in a positive light. "In the end you have to take an optimistic look [that] good music and good business will out," he observed. "People with strong product will find a way to reach their audience."
* Studio: www.studiodistribution.com
* Navarre: www.navarre.com
* Musicland: www.musicland.com
* Environ: www.environrecords.com
* Hefty: www.heftyrecords.com
* !K7: www.k7-de.com
04-07-06, 01:17 PM
#437
Senior Member
Join Date: Aug 2001
Posts: 569
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by RustyOrgan
Navarre's Studio Distribution Folds, Labels, Bands Lose Thousands (Due To Musicland Bankruptcy)
Studio Distribution Folds, Labels Lose Thousands
Matthew Solarski reports:
Perfect world: young, talented, rosy-cheeked musician-type slaves for months-- years, maybe-- cuts record, sells record with the help of kind grassroots label, earns enough bread to stay alive, and gets back to slaving. Rinse and repeat.
Real world: grassroots label has to answer to middleman distribution company, who in turn must answer to huge corporate mega-distro. Things like loans and credit and pay-delay periods crop up. Shit gets ugly. Suddenly young, talented musician-type is caught up in a precarious web of financial dependency in which one proverbial straw can break the camel's back. Suddenly the cheeks aren't so rosy.
For New York-based Studio Distribution and the dozens of electronic music labels beneath its umbrella (including Get Physical, Accidental, Crosstown Rebels, Fabric, Output, Peace Frog, Poker Flat, and Tresor) that dreaded straw arrived in January when specialty retailer Musicland Holding Corporation (which owns Sam Goody and Suncoast) filed for chapter 11 bankruptcy.
The bankruptcy in turn cost publisher and multimedia distributor Navarre Corporation some $12.7 million (based on a write-off reported in The Minneapolis/St. Paul Business Journal). Partnered with Studio, Navarre handled product fulfillment and a number of sales accounts for the distro-- and after posting the losses, Navarre pulled the plug on Studio.
Just like that, a nine-year old company was kaput, its employees suddenly jobless. Explained former Studio employee Jon Gray on an e-mail discussion list: "Basically Navarre, who handled our fulfillment and a lot of credit risk, got hit hard by Musicland going bankrupt," he wrote, continuing, "left [with] a large debt, [Navarre] decided that Studio was no longer a viable division, so abruptly stopped funding."
"There was no severance package available. We only have a week to get our shit and get out."
Former Studio employees aren't the only ones getting dicked over. The financial fallout from Studio's shutdown has been felt hardest by the over 40 labels for which Studio provided North American distribution, and their rosters. While some former Studio clients will still get distribution through Navarre, many were simply left out in the cold.
Worst of all, because there is roughly a three-month period between the delivery of a given record to Studio and repayment for that record, much of the money Studio owes labels will go unpaid.
For folks like DJ/producer (and Metro Area member) Morgan Geist, who runs Environ Records, this essentially means receiving no revenue on records released so far this year. As Geist told Pitchfork, "I can confirm we lost a lot of money, potentially a lot of stock [ i.e., product], and the benefits of all our work and cash spent on our publicity campaigns for North America, specifically for the Kelley Polar album [Love Songs of the Hanging Gardens]. Ditto any sales payments for that album."
Geist is extremely unhappy with the way Studio handled things. Apparently the distributor's then-president Dave Watkins sent a mass e-mail to his clients at the time of the closure in which he declared, "I'm not going to get into the details of Studio Distribution's closing but we were certainly not expecting this."
"The labels who will go out of business because of this and the artists who will get no royalties because of this deserve the fucking details," said Geist.
"I can't imagine not paying my artists royalties and then saying, 'I'm not going to get into the details of why you're not getting paid for your hard work.' I would deserve a skewering if I did that."
Watkins initially responded to Pitchfork's request for comment, but did not respond to follow-ups.
Environ is currently looking for new distribution. A recent label e-newsletter implored North American fans to purchase Environ records, particularly Polar's, directly from the label's online store, and not from retailers-- since neither the artist nor label are likely to receive any portion of store sales.
Chicago's Hefty Records is in a similar position, having shipped copies of Eliot Lipp's new LP Tacoma Mockingbird on the eve of Studio's closing. Owner John Hughes III suspects Lipp, too, may never see any revenue for sales of this album, nor will Hefty.
As Hughes explained, picking up the pieces has been a frustrating process, to say the least. "There's no progress with reclaiming the money owed," he wrote to Pitchfork. "Nothing has been communicated about that from Studio. From our past experience and attorney's advice, we found that [the bankruptcy] will be reviewed by a judge who will decide what portion should be paid out."
Continued Hughes, "This could be a couple years away and we can only hope for a small sliver of what's actually owed. Odds are we won't even receive that because the labels are at the back of the line. From what we've been told, the debt owed to Navarre will be [repaid] first and then [that of] the secured creditors."
A recent article in Billboard revealed that Studio had a line of credit with Navarre-- unknown to many of Studio's clients, including Hughes. "It really rubs me the wrong way," he wrote, "that all of these indie labels' records were used against that line of credit without us knowing."
Also complicating the matter is !K7, the German techno label that created Studio in 1997 to be its North American distributor. !K7 parted ways with the distro it started effective January 1 of this year; it has been suggested that they were better informed of Studio's precarious financial situation. The same Billboard article also mentions Navarre writing off a $4.1 million balance to an "unnamed label," which some suspect to be !K7.
UK-based label Global Underground also left Studio around the same time.
!K7's U.S. manager Jennifer Masset declined to comment on !K7's reasons for breaking ties with Studio, but did express to Pitchfork her disdain for Navarre's actions. "I think the way Navarre ended things for them was about as cold-hearted as this industry can get," Masset wrote. "I would say that the seven years I dedicated to Studio Distribution were the most fun I have had in this industry and it is unfortunate to watch such an incredible company be killed by a corporation like Navarre."
The bottom line: A whole lot of musicians and the labels behind them won't receive the bread they've earned this year. And they may never know exactly why.
Geist's advice? "I'd warn other label owners to be [as] vigilant as possible about getting paid on time," he told Pitchfork. "But the truth is that even vigilance often yields nothing, no change in distributor behavior or cash flow."
"In many ways the business hasn't changed since the 1950s or 60s," he said. "We're still in the situation where you usually have to ship a new record in order to get paid for the last one. Labels have very little bargaining power against distributors. The debt can stack up quickly and really sting you when a distributor goes for bankruptcy and there's little you can do about it."
"It's terrifying right now," Geist continued, "because as a label and as a studio artist (that is, not a touring live band with revenue from shows), it's very hard to make money through record sales. But if a system evolves where traditional distribution is gone but artists and labels can earn a living, I'm all for it."
Acknowledging the loss taken by artists and labels, publicist Gamall Awad, whose clients include many artists once distributed by Studio, attempted to put things in a positive light. "In the end you have to take an optimistic look [that] good music and good business will out," he observed. "People with strong product will find a way to reach their audience."
* Studio: www.studiodistribution.com
* Navarre: www.navarre.com
* Musicland: www.musicland.com
* Environ: www.environrecords.com
* Hefty: www.heftyrecords.com
* !K7: www.k7-de.com
Studio Distribution Folds, Labels Lose Thousands
Matthew Solarski reports:
Perfect world: young, talented, rosy-cheeked musician-type slaves for months-- years, maybe-- cuts record, sells record with the help of kind grassroots label, earns enough bread to stay alive, and gets back to slaving. Rinse and repeat.
Real world: grassroots label has to answer to middleman distribution company, who in turn must answer to huge corporate mega-distro. Things like loans and credit and pay-delay periods crop up. Shit gets ugly. Suddenly young, talented musician-type is caught up in a precarious web of financial dependency in which one proverbial straw can break the camel's back. Suddenly the cheeks aren't so rosy.
For New York-based Studio Distribution and the dozens of electronic music labels beneath its umbrella (including Get Physical, Accidental, Crosstown Rebels, Fabric, Output, Peace Frog, Poker Flat, and Tresor) that dreaded straw arrived in January when specialty retailer Musicland Holding Corporation (which owns Sam Goody and Suncoast) filed for chapter 11 bankruptcy.
The bankruptcy in turn cost publisher and multimedia distributor Navarre Corporation some $12.7 million (based on a write-off reported in The Minneapolis/St. Paul Business Journal). Partnered with Studio, Navarre handled product fulfillment and a number of sales accounts for the distro-- and after posting the losses, Navarre pulled the plug on Studio.
Just like that, a nine-year old company was kaput, its employees suddenly jobless. Explained former Studio employee Jon Gray on an e-mail discussion list: "Basically Navarre, who handled our fulfillment and a lot of credit risk, got hit hard by Musicland going bankrupt," he wrote, continuing, "left [with] a large debt, [Navarre] decided that Studio was no longer a viable division, so abruptly stopped funding."
"There was no severance package available. We only have a week to get our shit and get out."
Former Studio employees aren't the only ones getting dicked over. The financial fallout from Studio's shutdown has been felt hardest by the over 40 labels for which Studio provided North American distribution, and their rosters. While some former Studio clients will still get distribution through Navarre, many were simply left out in the cold.
Worst of all, because there is roughly a three-month period between the delivery of a given record to Studio and repayment for that record, much of the money Studio owes labels will go unpaid.
For folks like DJ/producer (and Metro Area member) Morgan Geist, who runs Environ Records, this essentially means receiving no revenue on records released so far this year. As Geist told Pitchfork, "I can confirm we lost a lot of money, potentially a lot of stock [ i.e., product], and the benefits of all our work and cash spent on our publicity campaigns for North America, specifically for the Kelley Polar album [Love Songs of the Hanging Gardens]. Ditto any sales payments for that album."
Geist is extremely unhappy with the way Studio handled things. Apparently the distributor's then-president Dave Watkins sent a mass e-mail to his clients at the time of the closure in which he declared, "I'm not going to get into the details of Studio Distribution's closing but we were certainly not expecting this."
"The labels who will go out of business because of this and the artists who will get no royalties because of this deserve the fucking details," said Geist.
"I can't imagine not paying my artists royalties and then saying, 'I'm not going to get into the details of why you're not getting paid for your hard work.' I would deserve a skewering if I did that."
Watkins initially responded to Pitchfork's request for comment, but did not respond to follow-ups.
Environ is currently looking for new distribution. A recent label e-newsletter implored North American fans to purchase Environ records, particularly Polar's, directly from the label's online store, and not from retailers-- since neither the artist nor label are likely to receive any portion of store sales.
Chicago's Hefty Records is in a similar position, having shipped copies of Eliot Lipp's new LP Tacoma Mockingbird on the eve of Studio's closing. Owner John Hughes III suspects Lipp, too, may never see any revenue for sales of this album, nor will Hefty.
As Hughes explained, picking up the pieces has been a frustrating process, to say the least. "There's no progress with reclaiming the money owed," he wrote to Pitchfork. "Nothing has been communicated about that from Studio. From our past experience and attorney's advice, we found that [the bankruptcy] will be reviewed by a judge who will decide what portion should be paid out."
Continued Hughes, "This could be a couple years away and we can only hope for a small sliver of what's actually owed. Odds are we won't even receive that because the labels are at the back of the line. From what we've been told, the debt owed to Navarre will be [repaid] first and then [that of] the secured creditors."
A recent article in Billboard revealed that Studio had a line of credit with Navarre-- unknown to many of Studio's clients, including Hughes. "It really rubs me the wrong way," he wrote, "that all of these indie labels' records were used against that line of credit without us knowing."
Also complicating the matter is !K7, the German techno label that created Studio in 1997 to be its North American distributor. !K7 parted ways with the distro it started effective January 1 of this year; it has been suggested that they were better informed of Studio's precarious financial situation. The same Billboard article also mentions Navarre writing off a $4.1 million balance to an "unnamed label," which some suspect to be !K7.
UK-based label Global Underground also left Studio around the same time.
!K7's U.S. manager Jennifer Masset declined to comment on !K7's reasons for breaking ties with Studio, but did express to Pitchfork her disdain for Navarre's actions. "I think the way Navarre ended things for them was about as cold-hearted as this industry can get," Masset wrote. "I would say that the seven years I dedicated to Studio Distribution were the most fun I have had in this industry and it is unfortunate to watch such an incredible company be killed by a corporation like Navarre."
The bottom line: A whole lot of musicians and the labels behind them won't receive the bread they've earned this year. And they may never know exactly why.
Geist's advice? "I'd warn other label owners to be [as] vigilant as possible about getting paid on time," he told Pitchfork. "But the truth is that even vigilance often yields nothing, no change in distributor behavior or cash flow."
"In many ways the business hasn't changed since the 1950s or 60s," he said. "We're still in the situation where you usually have to ship a new record in order to get paid for the last one. Labels have very little bargaining power against distributors. The debt can stack up quickly and really sting you when a distributor goes for bankruptcy and there's little you can do about it."
"It's terrifying right now," Geist continued, "because as a label and as a studio artist (that is, not a touring live band with revenue from shows), it's very hard to make money through record sales. But if a system evolves where traditional distribution is gone but artists and labels can earn a living, I'm all for it."
Acknowledging the loss taken by artists and labels, publicist Gamall Awad, whose clients include many artists once distributed by Studio, attempted to put things in a positive light. "In the end you have to take an optimistic look [that] good music and good business will out," he observed. "People with strong product will find a way to reach their audience."
* Studio: www.studiodistribution.com
* Navarre: www.navarre.com
* Musicland: www.musicland.com
* Environ: www.environrecords.com
* Hefty: www.heftyrecords.com
* !K7: www.k7-de.com
04-07-06, 01:42 PM
#438
Banned
Join Date: Aug 2005
Location: Minneapolis, MN
Posts: 794
Likes: 0
Received 0 Likes
on
0 Posts
For New York-based Studio Distribution and the dozens of electronic music labels beneath its umbrella, that dreaded straw arrived in January when specialty retailer Musicland Holding Corporation (which owns Sam Goody and Suncoast) filed for chapter 11 bankruptcy.
04-07-06, 01:56 PM
#439
DVD Talk Legend
Originally Posted by Cinemaddiction
Went to the lengths of quoting the whole damn thing, and it was right under your nose.
04-07-06, 06:18 PM
#441
Member
Join Date: Sep 2001
Posts: 136
Likes: 0
Received 0 Likes
on
0 Posts
OK, back to the sales: The CambridgeSide Galleria Mall store in Cambridge, Mass is almost gone, but still kicking. The new twist is that no DVDs are more than $11.99, excluding boxed sets. All DVDs are 60% off, no minimum #. I picked up a few more good titles today -- Metallica: Some Kind of Monster for $11.99, The Long Weekend for $7.99, Incident at Loch Ness for $5.99 (!), and a few others. There were still around 5 King Kong Production Diary sets left for ~$15, but I see that's what Amazon has them for now, so not as big of a draw.
Keeping my eye on the one in Salem, NH with 9-10 weeks left....
Bob
Keeping my eye on the one in Salem, NH with 9-10 weeks left....
Bob
04-07-06, 07:34 PM
#442
Senior Member
Join Date: Apr 2000
Location: Western North Carolina
Posts: 501
Likes: 0
Received 0 Likes
on
0 Posts
Wilkesboro NC Sam Goody is now 60% off (no minimum #) and there are 2 days left.
I picked up The Wedding Crashers Uncorked Edition ($11.59) and News Radio Season 1&2 ($15.99). They were down to 1 rack of DVD's and a wall unit full of TV boxed sets. Most of the TV sets were things like Gilmore Girls, One Tree Hill, Good Times, News Radio, Seinfeld, Enterprise, etc.
I picked up The Wedding Crashers Uncorked Edition ($11.59) and News Radio Season 1&2 ($15.99). They were down to 1 rack of DVD's and a wall unit full of TV boxed sets. Most of the TV sets were things like Gilmore Girls, One Tree Hill, Good Times, News Radio, Seinfeld, Enterprise, etc.
04-08-06, 09:43 AM
#443
DVD Talk Special Edition
Tallahassee Suncoast is at 60% off and closes tomorrow. I picked up Amazing Race Season 7 (the best of the series, imo) for $15.99.
They didn't have much left, but they did have lots of Seinfeld Season sets at $19.99 each.
They didn't have much left, but they did have lots of Seinfeld Season sets at $19.99 each.
04-08-06, 10:01 PM
#444
Member
Join Date: Apr 2005
Location: Champaign, IL
Posts: 155
Likes: 0
Received 0 Likes
on
0 Posts
I had not paid attention to this thread because the Sam Goody near me was not on the original list of closing stores but when I went in Market Place Mall in Champaign, IL today they had 25-50% off.
Mostly everything was 25% off so I only ended up getting three Legend of Zelda stickers that were 50% off.
Mostly everything was 25% off so I only ended up getting three Legend of Zelda stickers that were 50% off.
04-10-06, 09:32 PM
#446
Senior Member
Thread Starter
Join Date: Jan 2005
Posts: 648
Likes: 0
Received 0 Likes
on
0 Posts
Well, I went into one in DFW and I overheard the tail end of a conversation that the clerk was having with a guy who bought alot of stuff, saying that he did not want to know that at one store they had marked everything for $1.88 on the last day. (Hasn't happened here yet though 
04-11-06, 08:27 AM
#447
Senior Member
Join Date: Jul 2001
Posts: 259
Likes: 0
Received 0 Likes
on
0 Posts
Athens, AL Sam Goody was 60% on all DVDs, but I only picked up Heathers for $5.99. At Parkway Place Sam Goody in Huntsville, they are also 60% off all and I picked up Appleseed: CE (11.99) and A Stranger At My Table: CC ($16). The place has been picked over pretty well, but is still pretty organized. Many box sets left, but nothing that I really wanted.
04-11-06, 04:51 PM
#449
Member
Join Date: Jan 2006
Posts: 203
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by forumsmy
Well, I went into one in DFW and I overheard the tail end of a conversation that the clerk was having with a guy who bought alot of stuff, saying that he did not want to know that at one store they had marked everything for $1.88 on the last day. (Hasn't happened here yet though
04-11-06, 08:36 PM
#450
Member
Join Date: Nov 2004
Posts: 209
Likes: 0
Received 0 Likes
on
0 Posts
Aventura, FL Suncoast Update:
New DVDs & Sets: 70% off (no other discounts - no minimum)
Used DVDs: 80% off (few left)
T-Shirts: 70% off
Holiday: 90% off
Some observations:
No PSP UMDs left. The only recognizable TV sets include:
White Shadow Season 1 $11.99 (after discount)
News Radio Season 1 $11.99 (after discount)
Dukes of Hazzard Season 1 $11.99 (after discount)
Little House Season 9
Survivor Allstars
Store is open only until Saturday.
Tim :-)
New DVDs & Sets: 70% off (no other discounts - no minimum)
Used DVDs: 80% off (few left)
T-Shirts: 70% off
Holiday: 90% off
Some observations:
No PSP UMDs left. The only recognizable TV sets include:
White Shadow Season 1 $11.99 (after discount)
News Radio Season 1 $11.99 (after discount)
Dukes of Hazzard Season 1 $11.99 (after discount)
Little House Season 9
Survivor Allstars
Store is open only until Saturday.
Tim :-)